Question

What will a $190,000 house cost 8 years from now if the price appreciation for homes over that period averages 7 percent compounded annually? The future house of the cost will be $_____ (URGENT!)

Answer 1

$\text{Hello there!}\\\\\text{Use the appreciation formula to find the future cost of the house:}\\\\A=P(1+r)^t\\\\\text{P = principal}\\\\\text{r = rate}\\\\\text{t = time}\\\\\text{Plug in data from question and solve:}\\\\A=190,000(1+0.07)^8\\\\A=190,000(1.07)^8\\\\A=190,000(1.7181861798319201)\\\\A=326,455.374\\\\\text{Round to the nearest hundredths place}\\\\\boxed{\ 326,455.37}$